Huhtamaki is planning to consolidate the production footprint in the Fiber Foodservice Europe-Asia-Oceania segment by closing its production site in Port Klang, Malaysia, by the end of Q2 2024.
The company said it will continue to serve the region by retaining distribution centre in Malaysia and Thailand as well as a sales office in Singapore. The decision affects 93 employees, for whom they will provide support.
The aim of the consolidation is to optimise the manufacturing footprint, said Huhtamaki, hoping to improve the competitiveness and strengthen the foundation for future growth in the Asia Pacific region. The announced change is part of Huhtamaki’s program to accelerate strategy implementation published in November 2023 and expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately €100m over the next three years.
The Port Klang site planned to be closed does not represent a material share of the sales or profits of Huhtamaki. During the first and second quarters of 2024, Huhtamaki will book closure-related costs in total of approximately €13m.
